CALGARY – Return Energy Inc. (“Return” or the “Company”) (RTN: TSXV) is pleased to announce that it has completed its previously announced non-brokered private placement for aggregate gross proceeds of $25.0 million (the “Private Placement”) and appointed a new management team (the “New Management Team”) and new board of directors (the “New Board”) of the Company (collectively, the “Transaction”). Following the Transaction, the Company’s name will be changed to “Spartan Delta Corp.” (the “Name Change”).
Pursuant to the Private Placement, the Company issued an aggregate of 1,620,350,000 units (“Units”) and 879,650,000 common shares (“Common Shares”) in the capital of the Company at a price of $0.01 per Unit and Common Share, as applicable, for gross proceeds of $25.0 million. The Private Placement generated significant demand from investors who provided indications materially in excess of $25.0 million. Proceeds from the Private Placement will be used to fund additional working capital and possible acquisition opportunities.
Each Unit was comprised of one Common Share and one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.01 (the “Exercise Price”) for a period of five years. The Warrants will vest and become exercisable in accordance with the terms set forth in the press release of the Company dated November 21, 2019.
Pursuant to applicable securities laws, all securities issued pursuant to the Private Placement are subject to a hold period of four months plus one day following the date of issuance of such securities. The Company has received the written consent of a majority of its shareholders to complete the Transaction. The Private Placement remains subject to the final approval of the TSX Venture Exchange (the “TSXV”).
New Management Team
The New Management Team was appointed concurrently with the completion of the Private Placement, which is led by Richard F. McHardy as Executive Chairman and Fotis Kalantzis as President and Chief Executive Officer and includes Geri Greenall as Chief Financial Officer, Thanos Natras as Vice President, Exploration, Craig Martin as Vice President, Operations, Mark Hodgson as Vice President, Corporate Development, Brendan Paton as Manager, Engineering and Ashley Hohm as Controller. The New Board is comprised of Richard F. McHardy, Fotis Kalantzis, Don Archibald, Reginald Greenslade, Kevin Overstrom and Tamara MacDonald. Sanjib (Sony) Gill, a partner in the Calgary office of the national law firm Stikeman Elliott LLP, has been appointed as Corporate Secretary.
The New Management Team expects to focus on predominantly light oil opportunities in Western Canada, growing through a targeted acquisition and consolidation strategy complemented by development and exploration drilling. The recapitalized corporate structure will allow for the exploitation of more than 30 high-quality drilling locations targeting Upper Charlie Lake dolomitic siltstones in Rycroft, and the further expansion of Return’s opportunity suite through internally generated prospects and strategic acquisitions. The New Management Team is actively evaluating numerous acquisition opportunities.
Return Energy Inc. is a Calgary, Alberta based company engaged in oil and gas exploration and development. The Common Shares are listed on the TSXV under the trading symbol “RTN”.